India’s retail inflation based on the Consumer Price Index (CPI) rises to 4.82% in August, up from 4.45% in July, marking an eight-month high and the third straight month above the Reserve Bank of India’s medium-term 4% target. The data keeps headline CPI inflation above the RBI target threshold, while the RBI’s focus shifts to how price pressures evolve into the next policy window.
Sources agree that food prices are a major driver. CPI food inflation increases to 5.95% in August from 5.52% in July, with rural and urban food inflation higher at 6.13% and 5.64% respectively. Several commodities show sharp month-on-month swings, including onion inflation rising to 48.27% from 22.54% and ginger inflation staying elevated at 73.82%, while some items such as tomatoes and potatoes show declines year-on-year.
On fuel and fuel-related components, outlets note stronger inflation at the wholesale level, including fuel and power inflation exceeding 22% on the wholesale price index. Wholesale inflation also climbs to 9.92% in August, near double digits, reflecting broader cost pressures. Economists cited by one outlet point to continued upward pressure from global factors, and the inflation print is expected to be watched ahead of the RBI Monetary Policy Committee’s October meeting.
